You are asked to prepare a consolidated income statement and a consolidated cash flow statement based on the below transactions that took place during April 2018. You are also asked to give the total group accounts receivable at the end of the month. 1. Energy Limited spent $500.00 in startup costs for a plan which it is building which is not yet generating revenues, and 7,000.00 on acquisition of property, plant and equipment. The company had to borrow this $7,500.00 from Quick Finance Limited to do so. This will be settled at an undermined time which is not in the current fiscal year. 2. Energy Limited's 2 majority shareholders invested $10,000.00 cash each into the company 3. Quick Finance Limited had sales of $500,000.00 (revenue booked on loans issued). All of that were receivables which has not yet been paid by month end. 4. Quick Finance Limited had collections on receivables from previous months of $800,000.00 5. Quick Finance Limited lent $500,000.00 (principal) in loans, all of which are receivable at month end 6. By the end of April 2018, $60,000.00 of Quick Finance Limited's receivables needs to be written off. The company uses the allowance method to account for doubtful accounts. 7. Innovative Solutions Limited has sales of $12,000.00 during the month, none of which were a receivable & Money Transfer Limited earned $50,000.00 in commissions during the month, none of which was receivable. 9. Prudential Management Firm does not change management fees to these entities but instead has an intercompany transaction coming in monthly of $10,000.00 from Quick Finance Limited and $20,000.00 from Innovative Solutions Limited. This will be settled at an undermined time which is not in the current fiscal year. 10. Prudential Management Firm has a long term payable to XYZ Trust Limited which it paid $1,500.00 toward during the month, $1,200.00 being principal and $300.00 being interest. This was paid via cash. 11. Share capital for the group is $340,000.00 as per company does 12. Apart from any other that was mentioned, the group also had $150,000.00 in expenses. $50,000.00 of which was done on account, the remainder in cash 13. The group uses the accrual method of accounting 14. Below was the positions of the group at the end of March 2018: Prudential Management Firm Group Balance Sheet for Month Ending March 31, 2018 31-Mar-18 ASSETS Current Assets Cash and Bank Accounts And Loans Receivable Provision for Bad Debt Prepaid Expenses Startup Costs Total Current Assets 1,044,200 5,720,000 -1,000,000 3,000 40,000 5,807,200 Long Term Assets Investment in ABC Limited Total Long Term Assets 170,000 170,000 Fixed Assets Property Plant and Equipment Furniture and Equipment Total Fixed Assets 550,800 523,000 1,073,800 Total Assets 7,051,000 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payables Total Current Liabilities 35,000 35,000 Loan Term Liabilities Note Payable to XYZ Trust Limited Note Payable to ATE Trust Limited Total Long Term Liabilities Total Liabilities 58,000 60,000 118,000 153,000 Equity Share Capital Surplus Paid In Capital Retained Earnings Total Equity 340,000 158,000 6,400,000 6,898,000 TOTAL EQUITY AND LIABILITIES 7,051,000 You are asked to prepare a consolidated income statement and a consolidated cash flow statement based on the below transactions that took place during April 2018. You are also asked to give the total group accounts receivable at the end of the month. 1. Energy Limited spent $500.00 in startup costs for a plan which it is building which is not yet generating revenues, and 7,000.00 on acquisition of property, plant and equipment. The company had to borrow this $7,500.00 from Quick Finance Limited to do so. This will be settled at an undermined time which is not in the current fiscal year. 2. Energy Limited's 2 majority shareholders invested $10,000.00 cash each into the company 3. Quick Finance Limited had sales of $500,000.00 (revenue booked on loans issued). All of that were receivables which has not yet been paid by month end. 4. Quick Finance Limited had collections on receivables from previous months of $800,000.00 5. Quick Finance Limited lent $500,000.00 (principal) in loans, all of which are receivable at month end 6. By the end of April 2018, $60,000.00 of Quick Finance Limited's receivables needs to be written off. The company uses the allowance method to account for doubtful accounts. 7. Innovative Solutions Limited has sales of $12,000.00 during the month, none of which were a receivable & Money Transfer Limited earned $50,000.00 in commissions during the month, none of which was receivable. 9. Prudential Management Firm does not change management fees to these entities but instead has an intercompany transaction coming in monthly of $10,000.00 from Quick Finance Limited and $20,000.00 from Innovative Solutions Limited. This will be settled at an undermined time which is not in the current fiscal year. 10. Prudential Management Firm has a long term payable to XYZ Trust Limited which it paid $1,500.00 toward during the month, $1,200.00 being principal and $300.00 being interest. This was paid via cash. 11. Share capital for the group is $340,000.00 as per company does 12. Apart from any other that was mentioned, the group also had $150,000.00 in expenses. $50,000.00 of which was done on account, the remainder in cash 13. The group uses the accrual method of accounting 14. Below was the positions of the group at the end of March 2018: Prudential Management Firm Group Balance Sheet for Month Ending March 31, 2018 31-Mar-18 ASSETS Current Assets Cash and Bank Accounts And Loans Receivable Provision for Bad Debt Prepaid Expenses Startup Costs Total Current Assets 1,044,200 5,720,000 -1,000,000 3,000 40,000 5,807,200 Long Term Assets Investment in ABC Limited Total Long Term Assets 170,000 170,000 Fixed Assets Property Plant and Equipment Furniture and Equipment Total Fixed Assets 550,800 523,000 1,073,800 Total Assets 7,051,000 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts Payables Total Current Liabilities 35,000 35,000 Loan Term Liabilities Note Payable to XYZ Trust Limited Note Payable to ATE Trust Limited Total Long Term Liabilities Total Liabilities 58,000 60,000 118,000 153,000 Equity Share Capital Surplus Paid In Capital Retained Earnings Total Equity 340,000 158,000 6,400,000 6,898,000 TOTAL EQUITY AND LIABILITIES 7,051,000